During the Global Africa Business Initiative event in New York, the Republic of Ghana unveiled its new $550 billion Energy Transition and Investment Plan. The announcement highlights Ghana’s commitment to fighting climate change while simultaneously fostering economic development.
The plan provides a credible pathway forward to help Ghana achieve net-zero energy-related carbon emissions by 2060 by deploying low-carbon solutions across key economic sectors, such as oil and gas, transportation, and power. To achieve this, Ghana will focus on deploying six main decarbonizing technologies that would cover over 90% of the targeted abatement by 2060:
- Electrification & Renewables
- Carbon Capture & Storage
- Low-Carbon Hydrogen
- Battery Electric Vehicle Technologies
- Clean Cooking Technologies
- Negative-Emissions Solutions
Without this plan, Ghana’s emissions are predicted to rise from 28 Mt CO2e in 2021 to over 140 Mt by 2050, with the bulk of emissions growth coming from transportation driven by population growth.
"This pioneering Energy Transition and Investment Plan maps out Ghana's journey to achieve net-zero emissions by 2060 based on the latest data and evidence, ensuring that as our economy thrives, it does so in harmony with the environment,” said His Excellency Nana Akufo-Addo, President of the Republic of Ghana. “This plan is a testament to our dedication to fostering green industries, nurturing the evolution of cutting-edge low-carbon technologies, and propelling our nation towards a sustainable industrial revolution while giving equal growth opportunities to men and women."
According to the International Trade Administration, Ghana’s energy sector currently relies on hydro and thermal generation fueled by crude oil, natural gas, and diesel. Thermal generation accounts for nearly 66% of Ghana’s power generation mix, with hydro accounting for 33%. In total, Ghana’s electric access rate stands at just over 86%, with 91% of urban residents and 50% of rural residents being actively connected to the electricity grid.
Ghana’s Energy Transition and Investment Plan will be a vital tool for engaging the international community and investors in supporting the country’s energy transition and sustainable development goals. If the plan is achieved in full, it would generate nearly 400,000 jobs in the Ghana economy.
While this plan represents one of the largest commitments the country has made to developing its renewable energy sector, in 2022, Ghana announced it was investing $85 million in minigrids and stand-alone PV solar systems. The project was designed to support schools, health centers, and communities in an attempt to achieve the “last mile" of electrification.